Road Funding Ballot Proposal Language Released

The State of Michigan’s Bureau of Elections released the proposed language for the May 5, 2015 special election ballot proposal:

A PROPOSAL TO AMEND THE STATE CONSTITUTION TO INCREASE THE MAXIMUM SALES TAX RATE FROM 6% TO 7%, ELIMINATE SALES AND USE TAXES ON GASOLINE AND DIESEL FUEL, DEDICATE A PORTION OF USE TAX REVENUE TO THE SCHOOL AID FUND, REVISE PERMISSIBLE USES OF THE SCHOOL AID FUND, AND TRIGGER OTHER LAWS THAT INCLUDE DEDICATING REVENUE FOR ROADS AND OTHER TRANSPORTATION PURPOSES.

The proposed constitutional amendment would:

– Set maximum sales tax rate at 7% (now 6%).

– Exempt gasoline/diesel fuel from sales and use taxes.

– Dedicate portion of use tax to School Aid Fund (SAF).

– Allow use of SAF for public community colleges and career/technical education and prohibit use for higher education.

– Trigger laws that include but not limited to:

– Increase sales/use tax rates to 7%;

– Increase motor fuel tax on gasoline/Diesel fuel and vehicle registration fees and dedicate revenue for roads and other transportation purposes

– Require competitive bidding and warranties for road projects;

– Increase earned income tax credit.

Should this proposal be adopted?